Investment / Savings advice needed

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deputyjk

Registered User
Messages
38
Hello all

I reciently sold my house to purchase a new one that is being built and wont be ready until July 08.

Currently I have €50,000 sitting in my account earning 0% interest. I would like to earn some money on this sum between now and July 08.

I would also be able to save €900 a month until Next july.

As this is equity I built up in my house I would not like to risk a loss.

Should I invest in a Rabodirect type investment fund or should I go for a savings account? Any recommendations?
 
You can't afford capital risk => you need some form of deposit account, I would use Rabo in this situation, but check out the Best Buys for their competitors.
 
c. €15K in First Active eSavings @ 5.22%*, €10K in RaboDirect at 5% and the rest in Northern Rock Demand Online at 4.5% is probably the best lump sum deposit combination on offer right now. You could also drip feed money into one of the regular saver accounts offering c. 7% but be careful that the terms & conditions (some less restrictive than others) meet your specific needs.


* See the FA eSavings thread for more info - in particular the possibility that the rate falls to 4.07% on the lot if you go over the €15K balance.
 
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Any fund with equity or long-bond content is not low risk over such a short time-frame as yours...so I would not if I were not willing to risk some capital, and it sounds like you're not?
 
Great, Thanks Guys

Good thinking clubman about spliting up the capital. Ans yes South I'm not really willing to risk the capital.

What about the €800 a month?
 
Are you willing to take a risk with this?

Do you have a pension?
 
I meant to clarify that the rates mentioned in my earlier post are all gross CARs subject to DIRT at source of 20% (unless exempt).
deputyjk said:
What about the €800 a month?
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If you don't want to take a risk with this either then maybe EBS regular saver at 7% gross CAR with few if any of the restrictions (e.g. on saving term, access to funds etc.) that other regular saver accounts have?
 
South Yes I have a pension and I might be more willing to risk this money.

Thanks Clubman that looks like a good savings account with few restrictions as far as I can see.
 
Just wondering why Clubman recommends '' Northern Rock Direct Saver at 4.50%.'' Do you mean Northern Rock demand on line account? The Northern Rock Direct Saver accounts affer less than 4.50% ASAIK.
 
oldtimer said:
Just wondering why Clubman recommends '' Northern Rock Direct Saver at 4.50%.'' Do you mean Northern Rock demand on line account? The Northern Rock Direct Saver accounts affer less than 4.50% ASAIK.
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Sorry - I meant Demand Online.
 
deputyjk said:
South Yes I have a pension and I might be more willing to risk this money.

Thanks Clubman that looks like a good savings account with few restrictions as far as I can see.
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Would you consider using your regular contributions as an AVC to pension fund?

A net AVC of €800 could mean about a €1,400 monthly contribution to your pension fund if you pay 41% tax, not a bad return!
 
South said:
Would you consider using your regular contributions as an AVC to pension fund?

A net AVC of €800 could mean about a €1,400 monthly contribution to your pension fund if you pay 41% tax, not a bad return!
Click to expand...


Can I then take this money out next year to use for the house purchase?
 
No.

I presumed that it was the lump-sum that you needed for the house purchase.

In that case you should not put the €900/month into a pension plan.
 
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